Startup Brand Returns
What’s in a brand?
Is New York City a brand? What about the British Royal Family, Kendrick Lamar or your favourite actor?
Of course they are. For each of these you probably have expectations about your interactions with them, whether you experience them in person, via social media or through a streaming service. Those expectations, in turn, frame your decisions and experiences.
Your company has a brand whether you invest in it or not. If your brand is out of sync with your products, mission, or vision, you’re smothering your path for growth. This isn’t about the colour scheme on your business’ social media profiles, it’s about actively shaping how your customers, partners, and stakeholders see you.
Brand is not just product, or a logo.
Nor is it only shaped by advertising.
Every touchpoint and interaction builds your brand.
And it all starts with a clear, powerful value proposition.
Get noticed, get funded, capture markets and scale fast, because strong identity drives strong returns.
A Value Proposition Is Your Brand’s Foundation
A value proposition is a clear, simple statement that explains: what you offer, who it’s for, and why it matters.
It’s not a slogan or mission statement—it’s the reason someone chooses your product over anything else. It sits at the core of your brand and business, shaping everything from your product mapping to your go to market planning to your communications. Without a strong proposition, people won’t get what you do—or why they should care.
Why should brand strength matter to startups?
We build brands that cut through the noise, capture markets, and drive growth—because a strong identity delivers real returns.
A strong brand means more organic growth, lower advertising spend for conversion, and customers who stick around longer and spend more. This directly impacts the unit economics VCs scrutinise
Lower acquisition costs: acquiring a new customer is 5 – 25x more expensive than retaining an existing one
Greater loyalty, lower churn: customers with a positive brand perception are 11 – 18% more likely to be retained
Future product trial: customers are 9x more likely to trial new products from a brand that they’re loyal to
Lower price sensitivity: customers with a positive brand perception are willing to pay 16 – 41% more than the average
A well defined, clearly communicated brand builds emotional connection and trust, which drives brand loyalty
“A brand is simply trust” – Steve Jobs
Loyal customers spend ~30% more, and are 7x more likely to forgive service failures or other mistakes
Trust is a critical requirement for customer engagement – 81% of customers refuse to do business with or buy from a brand that they don’t trust
Investors see a strong brand as a sign that the startup is reliable and committed to long-term growth, and that they have a clear understanding of the target market.
59% of investors admit that branding affects their perception of a startup’s ability to scale successfully
A strong brand identity is vital for startups seeking to differentiate themselves and gain consumer attention in a market saturated with innovation. This distinctiveness not only helps a startup stand out but also acts as a safeguard against existing competitors and new entrants.
Strong brands outperform their competitors by 3.5x
50% of customers have left a brand because a competitor was better aligned with their needs – and reducing that churn rate by just 5% can boost profitability by 25% to 95%
Investors back more than just a product or a team; they invest in a company’s vision, market standing, and its anticipated future. A robust brand inherently mitigates perceived risk and enhances potential returns.
A strong brand contributes to higher company valuation, making it more attractive for funding rounds. Startups with strong branding report 23% higher valuations than those without, and ~3x greater likelihood of being funded
Exit Potential: Strong brands are more attractive acquisition targets for larger companies, often commanding higher multiples because of their established customer base, loyalty, and market perception – brand equity accounts for 20 percent of the S&P 500’s market capitalisation
A strong brand accelerates the journey towards product/market fit: it articulates what problem it solves, for whom, and why it matters, and enables genuine connection with its target audience. It is also vital for shaping the customer experience, and product development by providing a clear sense of direction and purpose.
Reduced risk of failure: A weak brand is often a foundational problem that contributes to many of the more commonly cited reasons for startup failure: 35% of failed startups cite lack of a market need as a contributing factor to their failure, and 20% point to being outcompeted in the market